JOHANNESBURG (miningweekly.com) − Platinum-group metals producer Platmin said on Monday that it would bring in an extra mining contractor at its Pilanesberg mine, after extensive damage was done to MCC’s fleet, following illegal strike action.

Platmin CEO Tom Dale said that contractor MCC, a subsidiary of Eqstra, had indicated that it was unable to haul the volumes of rock budgeted at the site, owing to the damage caused when illegal industrial action broke out on June 23.

Dale elaborated on plans, saying that the company, MCC and the new contractor would focus on different competencies and that drilling, blasting and load and haul activities were being discussed.

Load and haul would be further separated into waste and reefing operations.

“Platmin plans to take direct control of drilling and blasting in order to optimise mineral resource management and improve pit conditions,” said Dale.

He noted that the changes could take up to six months to implement and that clear areas of accountability would be created among the different parties.

Prior to the industrial action, Platmin was on its way to achieve production of 12 000 oz/m before the end of 2011, but, damage to the equipment, as well as the reorganisation of contractors would see the projected ramp-up delayed by between three and six months.

“We are confident that, once the revised operating structures are functioning, we will get back on track," said Dale.

Nevertheless, Platmin was able to more than double its sales during its June quarter to 21 888 oz, compared with the 10 870 oz that it sold during the comparable period last year, generating revenues of $34.5-million for the period.

In addition, the group would also evaluate the merit of its current listings on the TSX, Aim and JSE and consider potential alternatives.

The company shares on the JSE spiked more than 7% on Monday to R3.20 apiece.
 

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